Pakistan has received bids from 10 institutions to become advisers for a global bond sale as the country seeks to improve its finances.
According to the sources, Pakistan has received bids from 10 institutions, including JP Morgan, Chase and Co. and Citigroup for becoming the financial advisers for the sale of Eurobonds and Sukuk or Islamic bonds.
The bidders who want to advise Pakistan are as follows:
Bank of China Ltd.
Dubai Islamic Bank PJSC
Emirates NBD PJSC
Industrial and Commercial Bank of China Ltd
Deutsche Bank AG
Credit Suisse Group AG
Standard Chartered Plc
Out of ten, two consortiums will be hired to put structures in place for floating Eurobonds and Sukuk bonds.
Pakistan is looking to raise finances to reduce its fiscal deficit that rose to the highest level in three decades during the last fiscal year which ended in July. The nation is looking to stabilize its economy and curb its deficits as part of a $6 billion bailout agreement signed with the International Monetary Fund in May.
According to the State Bank's data, the nation's foreign exchange reserves stand at $7.8 billion, enough for less than two months of imports.
However, the reserves got a boost when foreigners bought $342 million of debt in the quarter through September, compared with virtually zero inflows in the past two years, as reported by Bloomberg.
Attempts at economic reforms, support from the International Monetary Fund and interest rates topping 13% made the nation's fixed-income attractive. Pakistan last tapped the overseas debt market in November 2017 when it raised $2.5 billion, according to data compiled by Bloomberg.
The country also plans to issue Chinese renminbi bonds this financial year, Hafeez Shaikh, the de-facto finance chief, told Bloomberg in an interview in July.
The government aims to reduce its budget deficit and boost sustainable dollar inflows via exports.
Source: Pro Pakistani